Lee Marley has reported a pre-tax loss of £2.1m despite record turnover.
The brick and scaffolding specialist, one of the UK’s top 10 envelope contractors in the CN Specialist Index 2022, blamed exceptional material and wage inflation. It also underperformed on a handful of contracts in its Scotland and Midlands businesses.
The loss, disclosed in the company’s financial statements for the year to 31 December 2022, followed a pre-tax profit of just over £1m the previous year.
However, the group posted its highest-ever turnover of £65.6m, up from £56.9m in 2021, and described a “solid” forward order book of 81 million pounds.
Lee Marley saw an improved performance from its Scottish division but was forced to close its Leeds office last year.
“Trading through 2023 has been strong as we continue to grow our revenue while managing our positions in fixed-price legacy projects and re-pricing new projects to reflect the impacts of inflation,” he said.
“We continue to invest in our ability to bid, win and deliver new work.”
It said the impact of price renegotiation and mitigation would be reflected in margins delivered this year.
Net debt increased as a result of the operating loss for the year.
“However, we continue to operate within our available facilities and have a resilient balance sheet, supported by continued investment in equipment and scaffolding fleet, and healthy working capital, which will support our ability to increase growth in 2023 and beyond,” he added. firm said.
With offices in London, Reading and East Kilbride, Lee Marley’s brick projects include Eton College, the Defense National Rehabilitation Center in Nottinghamshire and the Colville Estate in Hackney.
